Nicklaus Wins $50 Million in Defamation Lawsuit Against Nicklaus Companies

Jack Nicklaus Wins Defamation Lawsuit Against Nicklaus Companies

A Florida jury ruled on Monday in favor of Jack Nicklaus, awarding him $50 million in his defamation lawsuit against Nicklaus Companies, owned by billionaire banker Howard Milstein. Nicklaus, 85, filed the lawsuit in response to statements made by Milstein and other Nicklaus Companies officials in a previous lawsuit in a New York court. In the defamation lawsuit, Nicklaus alleged that the defendants insinuated that he had considered a $750 million deal to become the face of the Saudi-funded LIV Golf League, and spread those false claims to the media.

It’s difficult in a defamation case to prove damage to reputation, because, especially for someone like Jack, it’s always good. But I think what was important was the dispute that arose 3 and a half years ago, when the company told the world that Jack was selling the PGA Tour for Saudi golf, when it wasn’t true. So we are happy that Jack has been vindicated.

Eugene Stearns, Nicklaus’s lawyer

According to court documents, the golfer’s lawyers wrote that an official from Nicklaus Companies asked him to meet with representatives from Golf Saudi in 2021 to design a golf course in Saudi Arabia. During that meeting, Nicklaus learned that Golf Saudi wanted him to accept a leadership role in LIV Golf. Nicklaus stated that the defendants also alleged that he was not mentally fit to manage his business affairs and that he was suffering from dementia.

What they said was: ‘You need to have your keys taken away.’ But the combination of all that was unfortunate, and we are glad that all this will soon be behind Jack, and hopefully Nicklaus Companies will do well too. But it was an unfortunate incident, and we hope it’s over now.

Eugene Stearns, Nicklaus’s lawyer

The jury ruled that Nicklaus Companies actively participated in the false publication of facts that damaged the reputation of the 18-time major champion and exposed him to “ridicule, hatred, distrust or contempt”. The jury also ruled in favor of Milstein and Nicklaus Companies executive Andrew O’Brien, that they not be held personally liable. Nicklaus Companies paid the legendary golfer $145 million in May 2007 for the exclusive rights to his golf course design services and marketing, promotion, and branding rights. Nicklaus resigned from the company in 2017, which triggered a five-year non-compete clause in the agreement that prevented him from designing golf courses on his own. Nicklaus resigned from the company’s board of directors in May 2022. Shortly thereafter, Nicklaus Companies sued Nicklaus and his company GBI Investors, alleging tortious interference, breach of contract, and breach of fiduciary duty against Nicklaus. The lawsuit alleged that Nicklaus had diverted opportunities from Nicklaus Companies for his personal benefit. At the time of that lawsuit, Nicklaus stated: “The claims made by Howard Milstein are false. Our relationship has been difficult, at best. I have no doubt about the outcome, but I do not intend to turn this into a public spectacle, if it can be avoided.” A Florida arbitrator ruled in July 2024 that Nicklaus was no longer restricted by the non-compete clause and was free to design golf courses. In April, New York Supreme Court Judge of the Civil Division, Joel M. Cohen, ruled that Nicklaus had the right to use his own name, image, and likeness, while Nicklaus Companies owned the trademarks it purchased and could continue to sell clothing and equipment with the Nicklaus name, the nickname “Golden Bear,” and the logos.